Phone fraud biometrics tool makes gains

Online fraud gets a lot of media attention, but the well-publicized movement to crack down on such fraud seems to have pushed the bad guys into a more fertile area: Call center fraud. "When I look at my portfolio, the biggest risks I see are social engineering-through the call center, through the branch," a JPMorgan executive told Bank Technology News.

The bad guys are getting more sophisticated. The tricks are trickier, such as spoofing legitimate customers' phone numbers. A bunch of biometric solutions are being considered. There are apparently two approaches: "Whitelisting" involves taking a voice print of each customer saying specific words during an enrollment process, while "blacklisting" creates voice prints of fraud perpetrators after a crime has been committed and storing them in a database. It's unclear how fast these techniques will emerge, but banks may be better off with lower tech solutions right now. Better authentication questions may be one approach. Experian seems to be having some luck with its service that creates automated authentication questions. 

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